In what’s hoped to be a warning shot to San Francisco restaurants, San Francisco officials have settled a complaint with Patxi’s Chicago Pizza. The city’s investigation found that the pizzeria chain had violated the city’s health care law by collecting a 4 percent surcharge from customers under the guide of providing health care to employees — but “was using most of the money for other purposes.”

Patxi’s — which boasts four San Francisco locations, and eight overall — has to pay about $320,000 overall, which includes payments to current and former employees, plus penalties to the city.

Read the entire Chronicle piece for all the details surrounding the Patxi’s case, but know that City Attorney Dennis Herrera said that the Patxi’s bust should put San Francisco restaurants on high alert when it comes to being honest about those health care surcharges.